- The company had a slump of 58 percent in domestic passenger vehicles sales for the month of August 2019 with 7316 units as opposed to 18,420 units sold in August last year.
- The total sale volume of company for last month stood at 32,343 units, a decline of 48 percent in volumes over 62,688 units sold during the same month last year. Tata Motors reported one of its lowest sales in nearly two decades
The auto sector crisis is very badly affecting the manufacturers and Tata Motors is the latest Original Equipment Manufacturer (OEM) to announce a huge decline in the volumes. The company had a slump of 58 percent in domestic passenger vehicles sales for the month of August 2019 with 7316 units as opposed to 18,420 units sold in August last year. The total sale volume of company for last month stood at 32,343 units, a decline of 48 percent in volumes over 62,688 units sold during the same month last year. Tata Motors reported one of its lowest sales in nearly two decades.
President of Passenger Vehicles Unit, Tata Motors, Mayank Pareek said that “Given the current economic condition, they have focussed on improving the retail sales. The retail sales were 42 percent more than offtake and as a result, the network stock declined by 3000 vehicles. The dealers will be now prepared for the festive season.”
The prime focus remains on the working capital rotation of the channel. The aim of the company is to improve its retail capability, 72 new sales outlets were added and 3500+ sales executives recruited till August 2019.
“Marking the onset of the festive season, we will drive positive sentiments with special offers and several special editions. We have kick-started this by further increasing the style quotient of the Harrier with the Harrier Dark Edition. We are hopeful that the recently announced financial package by finance minister will help in improving the liquidity of the market and to reduce the ownership cost. This will certainly help the industry to revive and drive the growth,” he added further.
Tata registered negative growth across all categories in the commercial vehicle segment. The medium and heavy vehicles segment saw the company sell 5,340 units in August 2019, a plunge of 58 percent over 12,715 units sold during the same month last year. The I&LCV segment too saw a dip of 40 percent in the volumes with 3,152 units last month, very less as compared to 5,260 units sold in August 2018. Sales in the SCV and pick-up categories stood at 11,082 units, which is less by 36 percent, as against 17,426 units sold during the same period last year.
The passenger carriers from the company saw a slump of 50 percent in volumes with 2,250 units sold in August 2019, over 4,458 units sold in August last year.
Speaking on the CV sales report, Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors said, “Subdued demand sentiment due to poor freight availability, lower freight rates and a general slowdown in the economy continued to hamper the commercial vehicle demand.”
He also said that the company will continue with the approach of system stock reduction through retail focus and aligning production with monitoring the market in challenging times. In August, retail sales are estimated to be ahead of wholesale by 25 percent.
All the Automakers of India are now relying on a positive festive season and a package from the government to act as catalysts for the auto sector which was badly hit by the slowdown of the economy. With the OEMs requesting the government to grant a temporary reduction in GST rates, the customer buying sentiment is expected to finally pick up with the advent of the festive season.